Nextpower (NXT) Q2 2025 earnings summary

Executive summary

• Achieved seventh consecutive quarter of double-digit year-over-year revenue growth, with first half fiscal 2025 revenue up 29% year-over-year to $1.36 billion.

• Q2 FY25 revenue reached $636 million, up 11% year-over-year, with net income of $117 million and diluted EPS of $0.79.

• Gross profit rose 51% year-over-year to $224.8 million, with gross margin improving to 35.4% from 26.0%, driven by 45X Credits and cost savings.

• Backlog reached a record over $4.5 billion, driven by strong global demand and new product launches.

• Raised full-year profit target by $20 million to $645 million at the midpoint, with FY25 GAAP net income guidance raised to $378–$408 million.

Financial highlights

• Six-month revenue grew 29% year-over-year to $1.36 billion, with U.S. revenue up 49% and Rest of World down 5%.

• Q2 FY25 GAAP gross margin improved to 35.4% from 26.0% in Q2 FY24; adjusted EBITDA for Q2 FY25 was $173 million (27.2% margin).

• Six-month net income attributable to Nextracker Inc. was $237.1 million, up from $59.7 million; diluted EPS was $1.62 versus $0.99.

• Total cash and cash equivalents at quarter-end exceeded $560 million, with total liquidity over $1.5 billion.

• Net cash provided by operating activities for the first half of FY25 was $274.6 million; net cash used in investing was $159.6 million, mainly for acquisitions.

Outlook and guidance

• Double-digit revenue growth expected for full fiscal 2025, with raised profitability guidance and FY25 revenue outlook reaffirmed at $2.8 to $2.9 billion.

• FY25 adjusted EBITDA guidance increased to $625–$665 million; adjusted diluted EPS guidance raised to $3.10–$3.30.

• Fiscal 2026 projected to be another growth year, supported by legacy and new products.

• 90% of backlog expected to be realized as revenue over the next eight quarters, an improvement from 80% previously.

• Q4 anticipated to be exceptionally strong, driven by supply chain execution and robust demand.